KLA-Tencor Corp (NASDAQ:KLAC)

Earnings quality is solid, while sales and earnings are growing at a solid clip. ROIC is in the double digits and showing a positive trend. Cash yield is almost 10% and Days Sales Outstanding is also showing a positive trend over the past few years.

Growth At Reasonable Price.

KLA-Tencor is also an equipment provider, for semiconductor production. The firm has a dominant position in yield management and process monitoring equipment. Some of the growth here is coming on a cyclical spike off of 2009's recessionary levels, but KLA's $3.3 billion in revenues over the past 12 months is still a company record. Given the proliferation of electronics in almost everything from mobile devices to automobiles to toys, there remains an undercurrent of growth that KLAC is set to benefit from for many years.

Pros: EV/EBITDA of 3.71, PEG of 0.94, $7.75 net cash per share (22% of mkt cap), 4% dividend.

Cons: 7.5% of shares are sold short. No insider buying, only insider selling. If semis are going through an extended cyclical downturn, this is only good for an LT entry.

Read more: http://seekingalpha.com/article/288791-kla-tencor-time-to-pick-up-this-tech-stock-with-an-attractive-yield?source=email_authors_alerts

.55 PEG, nice profit margin and growth, balance sheet looks good.

2011 Forbes Special Edition

As a reminder, my thesis is to pick good companies at good pricies that pay dividends. Companies that I would be pleased to own if the market shut down for a year.

KLAC certainly meets that criteria. They pay a nice 2.3% dividend that has been steadily raised over time. They have a great balance sheet with $1.8b in cash, or almost $11 per share. They have been solidly beating expectations, yet have a ev/ebit of a bit over 6x.

Out perform

Profile
KLA-Tencor Corporation
One Technology Drive
Milpitas, CA 95035
United States - Map
Phone: 408-875-3000
Fax: 408-875-4144
Website: www.kla-tencor.com

Details
Index Membership: S&P 500
S&P 1500 Super Comp
Nasdaq 100
Sector: Technology
Industry: Semiconductor Equipment & Materials
Full Time Employees: 5,000

Business Summary

KLA-Tencor Corporation provides process control and yield management solutions for the semiconductor manufacturing and related microelectronics industries. It offers equipment comprising patterned and unpatterned wafer inspection, defect review, and classification; reticle defect inspection; packaging and interconnect inspection; critical dimension metrology; pattern overlay metrology; film thickness, surface topography, and composition measurement; measurement of in-chamber process conditions, wafer shape, and stress metrology; computational lithography tools; and yield and fab-wide data management and analysis solutions. The company also provides products that serve the LED, data storage, solar, and other industries; and semiconductor mask and wafer inspection and metrology systems. KLA-Tencor offers its products in the United States, Europe, Israel, Japan, Taiwan, Korea, and the Asia Pacific. The company was founded in 1975 and is headquartered in Milpitas, California.

***All above information from YAHOO FINANCE***

good cashflow, growth rate, good forward P/E

Qualifies for my stable dividends screen

stabledivs

Best in breed, owns PDC market, pent up demand for huge year in 2010...great valuation at <$30

great stock for a patient investor

tech

Tech spending turning around. Cap ex by chip firms will be beneficial to equip mfg.

This stock is a solid investment at this time. The chip market will be increasing to meet the new market demands

Intel's $7 billion factory upgrade

The semiconductor industry is about to come out of the slump triggered by over capacity in Flash Memory (thank you iPod buyers !)

KLAC will ride that wave.